You really only need to know one thing about real estate prices in Monaco. They’re very, very pricey. As a matter of fact, a survey done by Icon-Property.comMonaco real estate agency in early 2014 found that Monaco was the most expensive place to buy real estate in the world. That survey found that on average real estate in Monaco costs around $5,700 per square foot. That’s higher than Hong Kong or Singapore. It’s nearly three times the average cost of real estate in New York City.
There are a couple of factors that have led to the high price of real estate in Monaco. It’s always been a favourite of the rich and powerful and it has a mystique that many of the wealthy find irresistible. Monaco also is a well-known tax haven, making it a great place for the super wealthy to park their money. The other factor is the landscape. Monaco is basically built out, at least in all the places where the wealthy would want to live. So you have nearly unlimited money chasing limited real estate and that’s always a recipe for high prices.
France and tax
Monaco has become an even more popular destination since 2013, when the tax laws in nearby France were changed to impose a much higher tax rate on high-end real estate properties. That change motivated a number of the wealthy to relocate to Monaco, at least long to qualify for the special dual citizenship that they offer long-term residents of the municipality.
If you are interested in purchasing real estate in Monaco, it’s important to realize that you might have difficulty finding the property you want. Villa-sized estates are very rare and even single occupant homes do not often come onto the market. Most of the properties you’ll find are apartments and condos and since it has been a number of years since any major new development, many of the properties you’ll see are older buildings in the historical district.
The other wrinkle is parking. In many places in Monaco the parking is almost non-existent and when they are available, a single parking spot can cost as much as $250,000.
But there are some possible changes coming in Monaco and its real estate market. The government has begun a program to create new land by reclaiming it from the sea. It’s an expensive and complicated task, but given the high price of real estate, it’s one that still makes a lot of economic sense.